Panattoni Begins Sharing Plans for Roseville Property
Wednesday, March 10th 2021
Panattoni Development Co. Inc. has introduced an initial vision for about 236 acres in Roseville, and received City Council approval Wednesday to buy the land over a 10-year period.
The initial concept, covering the 124-acre southern portion of 6382 Phillip Road, proposes nearly 2 million square feet of industrial space, across nine buildings ranging from 135,000 to 300,000 square feet each.
“This is a target land-use opportunity for the city, and I applaud you for having the discipline to see the long-term benefits,” said Tim Schaedler, a regional partner with Panattoni, in his presentation to the council.
According to the approved purchase-and-sale agreement, Irvine-based Panattoni would pay $8.19 million for the land, only about 191 acres of which is developable. Panattoni would pay the city in phases of at least 35 acres at a time every two years.
Over the next year, Panattoni also will need to get city entitlements, including a zoning change and general plan amendment, for its proposed project. Panattoni is also responsible for site infrastructure such as roads and utilities as well as environmental review for its proposal.
The property is bisected by a creek as well as the future alignment of the Placer Parkway project. Panattoni’s plans for the part of the property north of Pleasant Grove Creek are not spelled out.
The approval vote wasn’t unanimous, with Vice Mayor Bruce Houdesheldt voting against. Houdesheldt said before the vote he was concerned the contract wasn’t strict enough in requiring Panattoni to make good on its plan.
“I’m not ready to bind a future council to the uncertainty that it brings,” he said, noting it’s the last large piece of land in the city that could be developed into such a jobs center.
Schaedler told the council Panattoni has its own reservations. The property will require $25 million worth of infrastructure work, he said, with no guarantee of future tenants
“If you gave me this land today, I wouldn’t take it,” he said.
Abbie Wertheim, a development manager with Panattoni, told the council the potential benefit is substantial. According to a study the company commissioned, the property could generate $584,000 in direct city general fund dollars, and $950 million in annual economic impact and 6,700 jobs at buildout. Site construction would generate $1 billion in economic impact and 5,300 jobs annually.
The project also got the endorsement of Greater Sacramento Economic Council CEO Barry Broome, who called into the meeting during the public comment period for the item.
“There is unlimited demand right now for industrial,” he said.